WOOL TRADE

Waikato Times, Volume 118, Issue 19758, 13 December 1935, Page 12

WOOL TRADE

DEMAND AND PRICES. LARGER JAPANESE REQUIREMENTS. Writing from Sydney on December 3, Messrs Wincbcombe, Carson Ltd. said:Variations in wool values so far this wool season have been limited, tbe September to November auctions being among tbe steadiest marketing periods ever experienced. During the four months competition has extended embracing all sections of buyers, including a larger volume or Continental and American purchasing orders than was experienced at any portion or the previous season. The lowest point of the market last season was March and the advance since recorded has been well distributed over tlie various tvpes of merino ileece and skirtings. At the close or November best spinners fleece wools were 50 per cent dearer, topmaking ileece wools ami skirtings GO per cent to 70 per cent higher than at the, low period quoted. For a considerable time crossbreds did not participate lo ilio same degree in' tlie improved demand, but latterly they have advanced. being JO per cent to 45 per cent above March basis. Substitution or them for the more costly merinos and also the military equipment movement which lias developed have given a fillip lo the use of crossbreds.

Some discussion has recently arisen regarding the size ot the current Australian clip. It. is certain that the quantity grown in the Commonwealth will display a considerable decrease compared with the preceding season, which, coupled with tlie fact that tlie carry-over at June 30 last was 127,487 bales less than twelve inonLhs before, means a decided shrinkage In tho supplies available for tlie twelve months. The rise in wool prices is not solely due to tlie reduction In supplies in Australia. South Africa will grow a slightly larger clip, but bad smaller carry-over stocks at June 30 last. The increase in tho total available in that quarter will only be about 23,000 bales and the quantity will bo in the vicinity of 300,000 bales less than tho peak point, in African production recorded itr 1 932-33.

Apart from tho supply aspect wool has had reason l'or an Increase in value. Industrial turnover lias expanded and armament activity lias also created much employment. At recent English quotations lead has been 26 per tun dearer than the 193 5 average prior and copper tn per ion dearer. in 1932 cotton was quoted in England at 3Jd per 11). and latterly at approximately Old. To a considerable extent. therefore, an advance lias been experienced in manufacturing materials. Woolgrowers met tlie market in years oi’ low prices thereby putting their product into eonstmiption anil keeping its statistical position sound. Thai factor Justified wool quickly benefiting by tho improvement in prices experienced for many conimodilies owing- lo the larger quantity of them being used and the resulting expansion in public purchasing ability.

Recently on tlie Continent prices rotlops nit futures markets have varied slightly downward. That, change, how- t ever, does not give cause for nervousness, j indication's generally favour the tnalnten-i atm- of a ready demand for the sheep's ! staple, wliirlt expectation is enhanced by | the statement, made in Japan that sin- Is ■ likelv i" buy over 800.900 bales or wooi In Australia tills season, an increase of luo.• jOO bale; on last seas-in's total, I